Financial Analysis



Financial Analysis

Trend Analysis

The analysis of financial ratios represent two types of analysis. First, an analyst can compare reasons of variation in past and current that is expected for the future of the enterprise. The current ratio (current assets to current liabilities) by the end of the current year could be compared with the ratio of current assets at the end of last year. When the financial ratios are presented on a worksheet for a period of years, the analyst can study the composition of change and determine whether there has been an improvement or a deterioration in financial position and performance of the company over time . You can also calculate financial ratios for projected or pro forma statements and compare them with current and historical reasons. In comparisons over time, it is better to compare not only for financial reasons but also the gross amounts.

In order to develop innovations and new business ideas and successfully place in the market, it is important for entrepreneurs to be informed about current trends and currents.

"What changes in consumption habits must I set myself? How can I respond to these changes? "Are fundamental issues faced by entrepreneurs are regularly offered to trendy products and maintain its market position and long term to expand (Feldblum, 1996).

Therefore, the trend analysis is an essential tool for innovation management. Social and technological trends to be seen and recognized at an early stage so that the current portfolio of a company of trends can be developed and adapted.

Subject of a trend analysis is to identify the companies and their offers relevant trends and show their significance for the portfolio of the provider. This applies in equal shares to new consumer trends and behavior patterns as well as to new technologies.

Balance Sheet

 

2011

 

2010

 

2009

% Change

% Change

Assets

 

 

 

 

 

Cash and Equivalents

102.83

55.45%

66.15

-4.50%

69.27

Receivables

153.42

116.24%

70.95

21.08%

58.6

Inventories

59.64

50.76%

39.56

29.92%

30.45

Other Current Assets

0

 

0

 

0

Total Current Assets

346.56

64.97%

210.07

9.77%

191.37

Property, Plant & Equipment, Gross

78.83

26.45%

62.34

2.91%

60.58

Accumulated Depreciation & Depletion

47.24

13.69%

41.55

12.94%

36.79

Property, Plant & Equipment, Net

31.59

51.95%

20.79

-12.61%

23.79

Intangibles

98.87

131.76%

42.66

534.82%

6.72

Other Non-Current Assets

84.75

-33.64%

127.72

 

73.12

Total Non-Current Assets

293.23

23.40%

237.63

75.39%

135.49

Liabilities & Shareholder Equity

 

 

 

 

 

Total Assets

639.79

42.91%

447.7

36.97%

326.86

Accounts Payable

69.75

88.06%

37.09

51.14%

24.54

Short Term Debt

0

 

0

 

0

Other Current Liabilities

14.13

 

0

 

0.16

Total Current Liabilities

135.09

89.12%

71.43

36.42%

52.36

Long Term Debt

0

 

0

 

0

Deferred Income Taxes

0

 

0

 

0

Other Non-Current Liabilities

29.94

57.83%

18.97

182.71%

6.71

Minority Interest

-118.00K

 

0

 

0

Total Non-Current Liabilities

29.82

57.20%

18.97

182.71%

6.71

Total Liabilities

164.91

82.42%

90.4

53.04%

59.07

Preferred Stock Equity

0

 

0

 

0

Common Stock Equity

474.88

32.91%

357.3

33.43%

267.79

Common Par

0.005

25.00%

0.004

33.33%

0.003

Additional Paid In Capital

186.32

12.40%

165.77

1807.00%

147.7

Cumulative Translation Adjustment

0

 

0

 

0

Retained Earnings

420.41

30.12%

323.09

30.62%

247.36

Treasury Stock

-132.54

0.00%

-132.54

3.56%

-127.98

Other Equity Adjustments

678

-30.25%

972

38.86%

700

Total Capitalization

474.88

32.91%

357.3

33.43%

267.79

Total Equity

474.88

32.91%

357.3

33.43%

267.79

Total Liabilities & Stock Equity

639.79

42.91%

447.7

36.97%

326.86

Total Common Shares Outstanding

43

2.33%

42.02

2.14%

41.14

Preferred Shares

0

 

0

 

0

Treasury Shares

8.4

-33.33%

12.6

-32.22%

18.59

Basic Weighted Shares Outstanding

42.26

1.88%

41.48

2.17%

40.6

Diluted Weighted Shares Outstanding

43.24

1.89%

42.44

2.93%

41.23

Number of Employees

1620

107.69%

780

11.43%

700

Number of Part-Time Employees

750

13.64%

660

-1.49%

670

The cash and cash equivalents witnessed a significant increase in cash and cash equivalent. There has been an increasing trend in the assets of the company showing a significant increase in inflows through sales, however the company must eradicate the issue of rising cost (Embrechts, 1997).

Income Statement

 

2011

% Change

2010

% Change

2009

 

 

 

 

 

 

Sales

987.26

55.37%

635.42

26.19%

503.55

Cost of Sales

595.54

70.37%

349.56

25.83%

277.8

Gross Operating Profit

391.72

37.04%

285.85

26.62%

225.75

Selling, General, and Administrative Expenses

226.89

28.29%

176.86

12.54%

157.15

Research & Development

0

 

0

 

0

Operating Income before D & A (EBITDA)

164.83

51.23%

108.99

58.88%

68.6

Depreciation & Amortization

11.06

10.60%

10

4.60%

9.56

Interest Income

4.88

15.91%

4.21

100.48%

2.1

Other Income - Net

0.000188

 

22.66

14.73%

19.75

Special Income / Charges

0

 

0

 

0

Total Income Before Interest Expenses (EBIT)

158.84

26.20%

125.86

55.61%

80.88

Interest Expense

51

1175.00%

4

-95.70%

93

Pre-Tax Income

158.79

26.16%

125.86

55.79%

80.79

Income Taxes

61.59

22.86%

50.13

63.40%

30.68

Minority Interest

-118

 

0

 

0

Net Income From Continuing Operations

97.32

28.53%

75.72

51.11%

50.11

Net Income From Discontinued Operations

0

 

0

 

0

Net Income From Total Operations

97.32

28.53%

75.72

51.11%

50.11

Extraordinary Income/Losses

0

 

0

 

0

Income From Cum. Effect of Acct. Change

0

 

0

 

0

Income From Tax Loss Carryforward

0

 

0

 

0

Other Gains / Losses

0

 

0

 

0

Total Net Income

97.32

28.53%

75.72

51.11%

50.11

The Net Income of the company in 2011 did not increase very ...